PROBLEM:

Inefficient procurement of raw materials or production components-as well as the costs of maintenance, repair and operations (MRO) - pump up overhead and subtract from the bottom line for all businesses. And now the new-economy companies are discovering what the old-economy companies knew all along: Profits do count. So, how can you improve efficiency and add to your bottom line?

SOLUTION:

Introduction to SCM:

How an enterprise ties together the people and processes -- internal and external -- associated with its flow of goods. A supply chain begins with natural resources and extends through multiple points until a final product reaches the ultimate consumer. Successful Supply Chain Management allows an enterprise to anticipate demand and deliver the right product to the right place at the right time at the lowest possible cost to satisfy its customers. Dramatic savings can be achieved in inventory reduction, transportation costs and reduced spoilage, by matching supply with actual demand.

Communication with customers can help you sell more using CRM, but it's equally important to use technology to improve the way your business buys materials.  Improving SCM - Supply Chain Management can cut the prices you pay for components and supplies, making the buying process more efficient.

Of course, how you deal with suppliers will depend on your kind of business and the type of products you are buying. Most businesses need general products ( such as office supplies ) , Direct Material used in Production, Indirect Materials used in Production & non-Production, Service Products ( such as Computer Maintenance Services, Electricity Services ).

For general products, companies can look to B2C electronic marketplaces or e-commerce websites that automate product ordering, delivery and tracking. You should select a marketplace connected to super markets near your own premises. A Singapore based company should not use marketplaces situated in USA. Remember Internet makes distance zero for information only, but not for physical goods.

For Direct or Indirect Materials, companies can look to Vertical Portals or Vortals or Vertical B2B marketplaces. This Portals are tailored to specific industries. For instance, there are now portals designed for everything from chemical supplies to apparels. While selecting foreign suppliers make sure your exchange rate fluctions, customs import duty & delivery time matches your production schedules. But a high degree of price, delivery time, credit comparison is required for selecting suppliers from this Portals.

For buying services like Buying a Hotel Room, Airline Tickets, Maintenance, Insurance, Banking, Government or Consulting, companies should look on different individual websites that provides this services.

With XML technology we integrate ERPWEB with all this different kind of suppliers to make B2B exchange activity via software to software talk through Internet a reality. In this scenario a Purchase Order (called e-PO) will be transmitted from ERPWEB to suppliers ERP System in XML Format.  Suppliers system Acknowledges this and commits a delivery date via XML to ERPWEB System. It does not matter what ERP Software your supplier is using, two ERPs will directly talk in real-time without any human intervention. World is moving to standardized XML documents standards published by Rosetta net & ERPWEB follows it.

 HOW SCM WORKS?:

1. PR Generation: A PR (Purchase Requisition) is generated automatically by MRP in case of Direct Material used in Production or Planning Department generates PR for all Indirect Material based on Re-order point planning or Employees generates PR for all Indirect Material, Office Supplies or Services via e-Procurement manual PR System. In manual PR employees select from approved list of suppliers, while in DM or IDM suppliers are automatically selected as per their business allocation pre-configured in the system.
2. PR Approval: Department Head first approves PR. Then depending on PR Amount PR goes to either FM, GM, COO or CEO for approval. Then PR goes to final approval by Purchase Manager. 
3. Inquiry Generation: PR will appear as inquiry on Supplier Portal. Authorized suppliers can see it & quote price and delivery dates to it. Purchase Manager negotiates, compares quotations and approves bid from various suppliers.
4. PO Generation: Approved Inquiries generates Purchase Order in formats specified by Suppliers. Wide variety of formats supported right from Paper Printout to Email to online Webpage to XML based.
5. PO Approval: PO is send for Approval to Purchase Manager & FM or GM or COO or CEO based on PO Amount. After PO Approval PO is finally published in that Suppliers Portal or send to supplier via physical media.
6. PO Acknowledgment: Supplier Acknowledge PO through Supplier Portal.
7. PO Tracking: PO History and Execution is tracked by Purchase & Planning Departments.
8. Supplier Stocks: Supplier updates their stock levels from time to time through Supplier Portal to indicate planner future trends of supply. Supplier also refers to published Supplier Forecast published by customer to plan their inventory requirements.
9. Supplier Performance Analysis: This modules allows Purchase Department to evaluate suppliers performance based on certain criteria's. Action of continuing or discontinuing supplier is based on this performance evaluation.
10. Supplier Evaluation & Registration: New Suppliers are evaluated and registered with the help of this module.

SCM Deliverables includes following:

• Supplier Portal: This will allow supplier to quote/bid to Inquiries. It will also allow supplier to key-in their stock levels. It will also allow supplier to key-in PO Acknowledgment and Delivery Dates. Suppliers Invoices are submitted online along with online DOs. Payment Acknowledgement & Account Statements settlements are also done online through this portal.
• Purchase Dept. Employee Portal: This will allow Purchase Dept. Employees to Register Supplier, Approve PR, Maintain Pricelist, Generate Inquiries, Select Suppliers,  generate electronic Purchase Orders & track deliveries online.
• Employee e-Procurement Portal: e-Procurement distributes controlled buying power throughout the company.  An employee can generate PR through this portal. Then he can see his PR Status - Approved or Disapproved. If Approved then he gets date & details of product he is going to get.

PRODUCT:

How ERPWEB SCM works:

• Procurement